Getting started
Is the consultation really free?
Yes. The first consultation is free and carries no obligation. We will tell you which chapter fits your situation and what it costs before you decide anything.
What should I bring to the consultation?
Two years of tax returns, two months of proof of income, and a list of your creditors and what you owe them.
Do I have to come into an office?
No. You can meet us at any of our five Michigan offices, or by phone and video from anywhere in the state.
Does my spouse have to file with me?
No. A married person can file alone. Whether a joint filing makes sense depends on whose name the debts are in, which we go through at the consultation.
Chapter 7 or Chapter 13
What is the difference between Chapter 13 and Chapter 7?
Chapter 13 is a consolidation payment plan, in most cases without having to pay everyone back. Chapter 7 is not a payment plan, and in some cases you can lose property.
How do I know if I qualify for Chapter 7?
Chapter 7 eligibility is set by the means test, which compares your household income with the Michigan median for a household your size. If your income is above it, a second calculation looks at what is left after allowed expenses. If you do not qualify for Chapter 7, Chapter 13 is usually available.
How long does each one take?
A Chapter 7 case takes about 4 months from filing to discharge. A Chapter 13 plan lasts 36 to 60 months.
How long do I have to wait if I have filed before?
It depends on which chapters you filed and are filing now, measured from one filing date to the next: 8 years between two Chapter 7 cases, 4 years from a Chapter 7 to a Chapter 13, 2 years between two Chapter 13 cases, and 6 years from a Chapter 13 to a Chapter 7, with some exceptions.
Your home, car and wages
Will I lose my house or car?
Most people who file keep both. Exemptions protect a set amount of equity, and Chapter 13 lets you catch up missed mortgage or car payments through the plan.
Can bankruptcy stop a foreclosure or sheriff’s sale?
Yes, if you file before the sale. Filing puts an automatic stay in place that stops the sale while your case is open. If you have a sale date, call rather than filling in a form.
Will it stop a wage garnishment?
Yes. The automatic stay stops garnishments as soon as the case is filed.
Will creditors keep calling me?
Once your case is filed, creditors have to stop collection calls and letters. If one calls, give them our number.
Which debts
Which debts can be discharged?
Credit cards, medical bills, personal loans, most collection accounts and many judgments.
Which debts usually survive bankruptcy?
Child support, alimony, most recent tax debt, most student loans, and criminal fines and restitution.
Can student loans be discharged?
Only if repaying them would cause undue hardship, which is decided in a separate proceeding inside the bankruptcy case. We can tell you whether your situation is worth pursuing.
Can tax debt be discharged?
Some older income tax debt can. In general the return must have been due at least three years ago, filed at least two years ago, and assessed at least 240 days before you file.
Cost and credit
How much does it cost?
Chapter 13 starts from $0 down for W2 employed filers. Chapter 7 starts from $1,499 down for single filers. You get a fixed quote at the consultation.
How long does bankruptcy stay on my credit report?
A Chapter 13 stays on your report for 7 years from filing. A Chapter 7 stays for 10 years.
Can I get a car loan or mortgage afterwards?
Yes. Many lenders work with people after a discharge, and Chapter 13 filers can ask the court for permission to take on new financing during the plan.
After you file
What is the 341 meeting?
About a month after filing you attend a meeting of creditors with the bankruptcy trustee. It is usually short, often held by phone or video, and your attorney attends with you. Creditors rarely appear.
Do I have to go to court?
Most clients attend only the 341 meeting. If a hearing is needed, an attorney from the firm covers it.
Will my employer find out?
Usually not. The exception is a Chapter 13 plan paid through payroll deduction, where your employer receives the payment order.
Five Michigan offices
We also handle cases statewide by phone and video.
